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Global Stock Market Plunges on Trump’s Announcement of Tariff Hike

April 2, 2025

The American and global stock markets plunged on Thursday following Donald Trump’s announcement of a new 10 percent tariff on all imports to the United States. The tariff hike of varying proportions sent shivers across world markets. Economists are warning of the risk of recession. In the U.S., the S&P 500 fell 3 percent at the market opening. Dow Jones Industrial Average futures lost 3.7 percent, and the Nasdaq slid 4.5 percent.

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In the U.S., the S&P 500 fell 3 percent at the market opening. Dow Jones Industrial Average futures lost 3.7 percent, and the Nasdaq slid 4.5 percent.

The American and global stock markets plunged on Thursday following Donald Trump’s announcement of a new 10 percent tariff on all imports to the United States. The tariff hike of varying proportions sent shivers across world markets. Economists are warning of the risk of recession. In the U.S., the S&P 500 fell 3 percent at the market opening. Dow Jones Industrial Average futures lost 3.7 percent, and the Nasdaq slid 4.5 percent.

Trump’s announcement also hurt oil prices, which tumbled more than 4 percent. The U.S. dollar hit its lowest level against the Japanese yen since early October.

On the Old Continent, European stocks closed 2.7 percent lower. Danish shipping giant Maersk, was 9.5 percent lower. Trump’s aggressive move brings the world one step closer to a global trade war.

Several world leaders, including the European Union, Canada and China, have already announced their intention to retaliate against the U.S. with countermeasures. World leaders strongly reacted to Donald Trump’s sweeping new tariffs signed on Wednesday. EU President Ursula von der Leyen said that the EU is finalising the first package of countermeasures in response to tariffs on steel and other products of interest. Canadian Prime Minister Mark Carney vowed to counter Trump’s tariffs and to protect Canadian workers. Canada is exempted from the new tariffs on U.S imports. However, the country had been targeted by previous measures.

In Brazil, in a rare display of unity, Congress unanimously passed a bill allowing the government to retaliate against any country imposing tariffs on Brazilian goods. The bill now has to be signed by President Luiz Inácio Lula da Silva. In Asia, China’s commerce minister urged the U.S. to “immediately cancel” the tariffs and promised countermeasures.

Japan, the U.S.’s closest ally in the region, plans to closely analyze the tariffs and their impact while refraining from talk of retaliation, according to Chief Cabinet Secretary Yoshimasa Hayashi.

The baseline tariffs will also affect 51 African nations, many of which are also targeted by additional charges. Extra tariffs include 30% for South Africa, 50% for Lesotho, and 47% for Madagascar.